Which of the following statements is incorrect?
A) The slope of the security market line is measured by beta.
B) Two securities with the same stand-alone risk can have different betas.
C) Company-specific risk can be diversified away.
D) The market risk premium is affected by attitudes about risk.
E) Higher beta stocks have a higher required return.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is incorrect?
A) The slope of the security market line is measured by beta.
B) Two securities with the same stand-alone risk can have different betas.
C) Company-specific risk can be diversified away.
D) The market risk premium is affected by attitudes about risk.
E) Higher beta stocks have a higher required return.

Which of the Following Statements Is Incorrect